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Viewing cable 07BANGKOK1209, DEPUTY PRIME MINISTER PRIDIYATHORN RESIGNS

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Reference ID Created Released Classification Origin
07BANGKOK1209 2007-02-28 23:51 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Bangkok
VZCZCXYZ0001
OO RUEHWEB

DE RUEHBK #1209 0592351
ZNR UUUUU ZZH
O 282351Z FEB 07
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5170
RUCPDOC/USDOC WASHDC
RUEATRS/DEPT OF TREASURY WASH DC
UNCLAS BANGKOK 001209 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS AND EB 
COMMERCE FOR EAP/MAC/OKSA 
TREASURY FOR OASIA 
STATE PASS TO USTR FOR WEISEL 
STATE PASS TO FEDERAL RESERVE SAN FRANCISCO FOR DAN FINEMAN 
STATE PASS FEDERAL RESERVE NEW YORK FOR MATT HILDEBRANDT 
 
E.O. 12958: N/A 
TAGS: ECON PGOV PHUM PREL TH
SUBJECT: DEPUTY PRIME MINISTER PRIDIYATHORN RESIGNS 
 
 
SENSITIVE BUT UNCLASSIFIED HANDLE ACCORDINGLY 
 
REF: A) 2006 BANGKOK 6156(New Thai Economic Team) 
B) 2006 BANGKOK 6002(Central Bank Governor Emerges as top Economic 
Advisor) 
C) Bangkok 1036 (SOMKID RESIGNS) 
D) Bangkok 940 (ANAND DOWNBEAT) 
E) Bangkok 152 (FOREIGN BUSINESS ACT) 
F) 06 Bangkok 7484 (CAPITAL CONTROLS IMPOSED) 
 
1. (U) On February 28, Deputy Prime Minister and Finance Minister 
Pridiyathorn Devakula resigned his positions in government effective 
March 1. The reasons he gave for his resignation were: 
 
- Unhappiness with the criticism leveled at him by the head of the 
Manager Media group, Sondhi Limthongkul. Pridiyathorn accused 
"certain members of this government" of working "for the benefit of 
certain media." 
 
- A none-too-veiled accusation that the current government is 
somehow working with pro-Thaksin elements, as illustrated by the 
appointment of former Deputy Prime Minister Somkid (who resiQNQQP8Qguous way. 
And the connection with the previous government is 
still continuing.  It is because a contact person with Thaksin 
government is still holding position in this government." 
 
- A general sense of being "uncomfortable" with certain cabinet 
members.eQQ'3k3Q}'|owing, the junta's credibility QX_QGQNign.  One local 
observer argued that Pridiyathorn continues to harbor political 
ambitions and that he had to start disassociating himself from the 
current regime in order to position himself for a run at parliament 
in the next elections -- although some credible figures believe 
Pridiyathorn's image is now beyond repair (for example, see ref D). 
 
3. (SBU) Another story making the rounds in explanation for today's 
events is that General Sonthi (head of the Council for National 
Security) working with Pridiyathorn arranged for Pridiyathorn to 
resign while making accusations regarding the cabinet's probity on 
the way out. This was done in order to pressure PM Surayud into 
resigning. The endgame, according to this thesis, would be 
Pridiyathorn becoming PM. This story is given credibility by those 
noting Pridiyathorn's close ties to the royal family. 
 
4. (SBU) Comment: Shortly after the coup, Pridiyathorn told us (ref 
B) that he was sought out by the generals to take on the economic 
portfolio before the tanks rolled on September 19.  He was to take 
care of the economy and reassure foreigner investors while the 
generals cleaned up the political problems left by Thaksin. By all 
accounts Pridiyathorn has been the overwhelmingly dominant voice on 
economic matters in this government and his departure will leave a 
vacuum that will be difficult to fill; not so muc c}gDCQ 
which have been widely reviled in the foreign business community) 
but because there are few credible replacements even for this weak 
performer. 
 
5. (SBU) Comment, continued: With this government having only monthQ&QQ2left in its self-professed mandate, increasingly difficult economic 
and political environments, and the example of Somkid's recent 
difficulties, it may prove difficult to find an acceptableQQJQqzom, among other ailments, a severe lack of high-level 
policy coordination.